Exercise 3-19 a-b (Part Level Submission) The following data are taken from the comparative balance sheets...

Exercise 3-19 a-b (Part Level Submission)

The following data are taken from the comparative balance sheets of Cullumber Billiards Club, which prepares its financial statements using the accrual basis of accounting.

December 31	2020	2019
Accounts receivable from members	$13,800	$ 8,000
Unearned service revenue	16,300	24,200

Members are billed based upon their use of the club’s facilities. Unearned service revenues arise from the sale of gift certificates, which members can apply to their future use of club facilities. The 2020 income statement for the club showed that service revenue of $164,000 was earned during the year.

(a)

Prepare journal entries for each of the following events that took place during 2020. (Hint: You will probably find it helpful to use T-accounts to analyze these data.)

(1)		Accounts receivable from 2019 were all collected.
(2)		Gift certificates outstanding at the end of 2019 were all redeemed.
(3)		(a) An additional $39,000 worth of gift certificates were sold during 2020.
		(b) A portion of the above gift certificates was used by the recipients during the year; the remainder was still outstanding at the end of 2020.
(4)		Services performed for members for 2020 were billed to members.
(5)		Accounts receivable for 2020 (i.e., those billed in item [4] above) were partially collected.

(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Account Titles	Debit	Credit
1.

2.

3 (a)

3 (b)

4.

5.

Attempts: 0 of 3 used

Save for later

Submit Answer

Expert Solution

S.no.	Accounts title and explanations		Debit $	Credit $
a.	Cash account			8000
	Accounts recievable			8000
	(for cash collected from members)

b.	Unearned service revenue		24200
	Service revenue				24200
	(for sgift certificates redeemed)

c-1	Cash account			39000
	Unearned service revenue			39000
	(for sale of gift certificates)

c-2	Unearned service revenue		22700
	Service revenue	(39000-16300)		22700
	(for sgift certificates redeemed)

d.	Accounts receivable (164000-24200-22700)	117100
	Service revenue				117100
	(for services provided on account)

e.	Cash account (117100-13800)		103300
	Accounts receivable			103300
	(for cash received on account)

ekkarill92 answered 1 year ago

Exercise 5-18 (Part Level Submission) The comparative balance sheets of Pina Corporation at the beginning and...

Exercise 5-18 (Part Level Submission) The comparative balance sheets of Pina Corporation at the beginning and end of the year 2017 appear below. PINA CORPORATION BALANCE SHEETS Dec. 31, 2017 Jan. 1, 2017 Inc./Dec. Assets Cash $21,880 $15,320 $6,560 Inc. Accounts receivable 107,880 90,320 17,560 Inc. Equipment 40,880 24,320 16,560 Inc. Less: Accumulated Depreciation-Equipment (17,000 ) (11,000 ) 6,000 Inc. Total $153,640 $118,960 Liabilities and Stockholders’ Equity Accounts payable $21,880 $17,320 4,560 Inc. Common stock 101,880 82,320 19,560 Inc....

The following balance sheets were taken from the records of Blalock Company: Blalock Company Comparative Balance...

The following balance sheets were taken from the records of Blalock Company: Blalock Company Comparative Balance Sheets At December 31, 20X1 and 20X2 1 20X1 20X2 2 Assets 3 Cash $150,000.00 $185,000.00 4 Accounts receivable 70,000.00 80,000.00 5 Investments 0.00 30,000.00 6 Plant and equipment 100,000.00 105,000.00 7 Accumulated depreciation (30,000.00) (32,000.00) 8 Land 20,000.00 30,000.00 9 Total assets $310,000.00 $398,000.00 10 Liabilities and equity 11 Accounts payable $40,000.00 $50,000.00 12 Bonds payable 60,000.00 0.00 13 Mortgage payable 0.00 50,000.00...

Exercise 19-20 (Part Level Submission) The differences between the book basis and tax basis of the...

Exercise 19-20 (Part Level Submission) The differences between the book basis and tax basis of the assets and liabilities of Ivanhoe Corporation at the end of 2016 are presented below. Book Basis Tax Basis Accounts receivable $46,000 $0 Litigation liability 28,700 0 It is estimated that the litigation liability will be settled in 2017. The difference in accounts receivable will result in taxable amounts of $29,800 in 2017 and $16,200 in 2018. The company has taxable income of $341,000 in...

Exercise 19-23 (Part Level Submission) Spamela Hamderson Inc. reports the following pretax income (loss) for both...

Exercise 19-23 (Part Level Submission) Spamela Hamderson Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year Pretax Income (Loss) Tax Rate 2018 $120,000 17 % 2019 90,000 17 % 2020 (280,000 ) 19 % 2021 300,000 19 % The tax rates listed were all enacted by the beginning of 2018. (a) Your answer is partially correct. Try again. Prepare the journal entries for the years 2018–2021 to record income tax expense (benefit) and...

Exercise 19-24 (Part Level Submission) Blue Inc. reports the following pretax income (loss) for both book...

Exercise 19-24 (Part Level Submission) Blue Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carryback provision is used where possible for a net operating loss.) Year Pretax Income (Loss) Tax Rate 2015 $130,000 40 % 2016 94,000 40 % 2017 (307,000 ) 45 % 2018 112,000 45 % The tax rates listed were all enacted by the beginning of 2015. (a) Prepare the journal entries for years 2015–2018 to record income tax expense...

Exercise 23-17 (Part Level Submission) Sage Inc., had the following condensed balance sheet at the end...

Exercise 23-17 (Part Level Submission) Sage Inc., had the following condensed balance sheet at the end of operations for 2019. SAGE INC. BALANCE SHEET DECEMBER 31, 2019 Cash $8,400 Current liabilities $15,000 Current assets other than cash 29,200 Long-term notes payable 25,500 Equity invesments 19,800 Bonds payable 25,000 Plant assets (net) 66,900 Common stock 75,000 Land 40,100 Retained earnings 23,900 $164,400 $164,400 During 2020, the following occurred. 1. A tract of land was purchased for $8,900. 2. Bonds payable in...

The following data is supplied from the comparative balance sheets and income statement information from Westerman,...

The following data is supplied from the comparative balance sheets and income statement information from Westerman, Inc. 2020 2019 Cash 88,000 64,000 Accounts Receivable 48,000 32,000 Inventory 56,000 64,000 Prepaid Insurance 32,000 40,000 Property, plant & equipment 88,000 64,000 Accumulated Depreciation (24,000) (16,000) Total 288,000 248,000 Accounts Payable 80,000 64,000 Salaries Payable 56,000 64,000 Long-term notes payable 40,000 48,000 Common...

Exercise 13-8 Here are comparative balance sheets for Velo Company. VELO COMPANY Comparative Balance Sheets December...

Exercise 13-8 Here are comparative balance sheets for Velo Company. VELO COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 73,000 $ 33,400 Accounts receivable 85,600 70,900 Inventory 170,000 186,900 Land 73,000 101,700 Equipment 260,700 200,800 Accumulated depreciation—equipment (66,000 ) (33,700 ) Total $596,300 $560,000 Liabilities and Stockholders’ Equity Accounts payable $ 35,300 $ 47,100 Bonds payable 149,000 203,200 Common stock ($1 par) 216,300 172,000 Retained earnings 195,700 137,700 Total $596,300 $560,000 Additional information: 1. Net income for...

Problem 18-01A a, b1 (Part Level Submission) Here are comparative statement data for Duke Company and...

Problem 18-01A a, b1 (Part Level Submission) Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance sheet data are as of December 31, 2020, and December 31, 2019. Duke Company Lord Company 2020 2019 2020 2019 Net sales $1,884,000 $561,000 Cost of goods sold 1,070,112 297,330 Operating expenses 261,876 79,662 Interest expense 7,536 3,927 Income tax expense 52,752 6,171 Current assets 320,500 $311,800 83,200 $78,300 Plant assets (net) 519,000 497,300 139,800 124,500 Current liabilities...

Exercise 18-3 The comparative condensed balance sheets of Gurley Corporation are presented below. GURLEY CORPORATION Comparative...

Exercise 18-3 The comparative condensed balance sheets of Gurley Corporation are presented below. GURLEY CORPORATION Comparative Condensed Balance Sheets December 31 2017 2016 Assets Current assets $ 73,800 $ 79,400 Property, plant, and equipment (net) 97,100 91,200 Intangibles 27,400 40,200 Total assets $198,300 $210,800 Liabilities and stockholders’ equity Current liabilities $ 40,400 $ 49,200 Long-term liabilities 143,200 148,000 Stockholders’ equity 14,700 13,600 Total liabilities and stockholders’ equity $198,300 $210,800 (a) Prepare a horizontal analysis of the balance sheet data for...

Question